The Dynamix studio was closed by its parent company Sierra Entertainment on August 14, 2001, as part of Sierra's restructuring under Vivendi Universal. Several veterans of the studio (including Tunnell), however, stayed in Eugene and founded a new studio / electronic publisher, GarageGames.

After over 10 years of retirement, Dynamix co-founder and game designer Damon Slye returned to the games industry to start Mad Otter Games in Eugene, Oregon in 2007 alongside several other key ex-Dynamix employees.[3]Mad Otter Games released the online World War II dogfighting game Ace of Aces[4] in 2008 on the web portal InstantAction, though after InstantAction was shut down the company revealed they would be re-releasing the game on their own website (as of August 2012 the game has not been re-released).[5] They are currently developing an online MMORPG called A Mystical Land, which was released in 2011.[6] On October 22, 2013, a Kickstarter campaign was started to fund a re-release of Red Baron.[7]

Some of the core Dynamix members started GarageGames, an independent-friendly engine developer and game publisher. They negotiated an agreement with Sierra for the source code to the Tribes 2game engine. After reworking the code, GarageGames released it as V12 but were soon told that an engine already had the name so it was then called the Torque Game Engine (or TGE). The source code for TGE, a professional-grade 3D engine, was available to nearly anyone for fees starting at USD$100, but has since been released as open source under the MIT License.